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Are You Getting the Most from Your Year-End Charitable Giving?
November 17, 2025
The season between Thanksgiving and year-end is when many of us feel most generous. We're reflecting on what we're grateful for, seeing appeals from organizations we care about, and maybe writing checks on Giving Tuesday. If you're 70½ or older and have an IRA, there's a powerful yet often overlooked giving strategy that can help you make a bigger impact: the Qualified Charitable Distribution (QCD).
What's a QCD and Why Does It Matter?
A Qualified Charitable Distribution lets you donate directly from your IRA to charity—up to $108,000 per year in 2025. The gift doesn't count as taxable income, which makes it fundamentally different from taking a distribution and then writing a check.
This isn't just about saving on taxes. It's about making sure your resources are working toward what matters to you.
Why This Approach Makes Sense
1. It Satisfies Your Required Minimum Distribution
If you're 73 or older, you're already taking RMDs—the minimum amount the IRS requires you to withdraw from your traditional IRA each year—whether you need the money or not. A QCD counts toward that requirement without adding to your taxable income. You're fulfilling an obligation while supporting causes you believe in.
2. It Lowers Your Adjusted Gross Income
Unlike a charitable deduction (which requires itemizing), a QCD directly reduces your AGI. This isn't just about your tax bill. A lower AGI can mean:
- Lower Medicare premiums
- Reduced taxes on Social Security benefits
- Less impact on deductions and credits that phase out at higher income levels
3. It Works Even If You Take the Standard Deduction
With the standard deduction at $15,000 for individuals and $30,000 for married couples filing jointly in 2025, most retirees don't itemize anymore. A QCD gives you a tax benefit from charitable giving without needing to itemize.
Making Your QCD Gift This Season
As Giving Tuesday approaches on December 2nd, here's what you need to know to execute a QCD:
Eligibility Requirements:
- You must be 70½ or older
- The distribution must go directly from your IRA to a qualified 501(c)(3) public charity
- You cannot receive any goods or services in exchange for the donation
Important Deadlines:
For your QCD to count toward your 2025 RMD and provide this year's tax benefits, the funds must leave your IRA by December 31st. However, don't wait until the last minute—processing can take time, especially during the busy holiday season.
How to Execute a QCD:
- Contact your IRA custodian and request a QCD (not a standard distribution)
- Provide the charity's name, address, and tax ID number
- Request that the check be made payable to the charity (not to you)
- Consider having the check sent directly to the charity or sent to you to hand-deliver
- Keep documentation of the gift for your tax records
A Season of Strategic Generosity
This Thanksgiving and Giving Tuesday season offers the perfect opportunity to align your charitable heart with smart financial planning. Whether you're passionate about your local food bank, your alma mater, your place of worship, or a cause that's close to your heart, a QCD can help you give more effectively.
This season of gratitude reminds us that true wealth isn't just about what we accumulate. It is about what we share. A QCD allows you to share your blessings in a way that honors both your charitable intentions and your financial well-being.
Next Steps
If you're interested in making a QCD this year or incorporating this strategy into your long-term giving plan, we're here to help. We can work with you to:
- Calculate the optimal QCD amount for your situation
- Coordinate with your IRA custodian to ensure proper execution
- Integrate QCDs into your comprehensive retirement income strategy
Contact us to schedule a conversation about how QCDs and other tax-smart giving strategies can help you make the most of your charitable generosity this season and beyond.
Need help evaluating how your employer benefits fit into your overall financial plan? We're here to help you connect the pieces.
AUTHOR: Alexander Financial Planning, Inc.
This material is distributed by Alexander Financial Planning, Inc. (AFPI) and is for information purposes only. Although information has been obtained from sources we believe to be reliable, we do not guarantee its accuracy. AFPI assumes no liability for the interpretation or use of this information. No portion of this writing should be construed as legal or accounting advice. All rights reserved.RETURN TO BLOG ARCHIVE
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